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Indeed, this last point has become part of a legal battleground in recent years as some
workers hired under the rubric of contingent workers have subsequently argued that this
has been a title in name only, and that their employers use this title to discriminate
against them in various ways. For instance, FedEx relies on over 13,000 “contract” dri-
vers. These individuals wear FedEx uniforms, drive FedEx trucks, and must follow FedEx
rules and procedures. However, because the firm has hired them under a different employ-
ment agreement than its “regular” employees, it does not provide them with benefits. Some
of those individuals are currently suing FedEx on the grounds that, for all practical
purposes, they are employees and should enjoy the same benefits as other drivers.
51
SUMMARY OF LEARNING OUTCOMES AND KEY POINTS
1.
Describe the environmental context of HRM,
including its strategic importance and its rela-
tionship with legal and social factors.
• HRM is concerned with attracting, developing,
and maintaining the human resources that an
organization needs.
• Its environmental context consists of its strate-
gic importance and the legal and social envir-
onments that affect HRM.
2.
Discuss how organizations attract human
resources, including human resource planning,
recruiting, and selecting.
• Attracting human resources is an important
part of the HRM function.
• Human resource planning starts with job
analysis and then focuses on forecasting the
organization’s future need for employees,
forecasting the availability of employees both
within and outside the organization, and plan-
ning programs to ensure that the proper num-
ber and type of employees will be available
when needed.
• Recruitment and selection are the processes by
which job applicants are attracted, assessed, and
hired.
• Methods for selecting applicants include appli-
cation blanks, tests, interviews, and assessment
centers.
• Any method used for selection should be
properly validated.
3.
Describe how organizations develop human
resources, including training and development,
performance appraisal, and performance
feedback.
• Organizations must also work to develop their
human resources.
• Training and development enable employees
to perform their present job effectively and to
prepare for future jobs.
• Performance appraisals are important for
validating selection devices, assessing the
impact of training programs, deciding pay
raises and promotions, and determining
training needs.
• Both objective and judgmental methods of
appraisal can be applied, and a good system
usually includes several methods.
• The validity of appraisal information is always
a concern because it is difficult to accurately
evaluate the many aspects of a person’s job
performance.
4.
Discuss how organizations maintain human
resources, including the determination of com-
pensation and benefits and career planning.
• Maintaining human resources is also
important.
• Compensation rates must be fair compared
with rates for other jobs within the organization
and with rates for the same or similar jobs in
other organizations in the labor market.
• Properly designed incentive or merit pay sys-
tems can encourage high performance, and a
good benefits program can help attract and
retain employees.
• Career planning is also a major aspect of HRM.
5.
Discuss the nature of diversity, including its
meaning, associated trends, impact, and
management.
• Diversity exists in an organization when its
members differ from one another along one or
more important dimensions, including gender,
age, and ethnicity.
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